The Indian Public Sector General Insurance Companies (PSGICs) have turned around their financial fortunes, recording a profit of ₹1,066 crore in the third quarter of the financial year 2024-25. This marks a significant turnaround from the losses of over ₹10,000 crore reported in the previous year. The companies, which include Oriental Insurance Company Ltd. (OICL), National Insurance Company Ltd. (NICL), United India Insurance Company Ltd. (UIICL), and New India Assurance Company Ltd. (NIACL), have implemented various strategies to achieve this profit, including improved risk management, adoption of advanced technologies, and enhanced customer service.
According to reports, the government played a crucial role in revitalizing the PSGICs by providing capital infusions, strategic reforms, and performance-based monitoring systems. The government’s efforts, which started in 2019-20 and continued until 2021-22, included a total capital infusion of ₹17,450 crore to support structural improvements, operational efficiency, and financial stability.
The PSGICs’ profit can be attributed to several key factors, including improved risk management practices, diversification of products, and enhanced customer service. The companies have also implemented loss control measures and adopted advanced technologies to improve their operational efficiency.
The achievement of the PSGICs is significant, as it marks a major turnaround from their previously reported losses. The government’s initiatives and the companies’ efforts have resulted in a collective profit of ₹1,066 crore in the third quarter of the financial year 2024-25. This success story serves as a testament to the potential of the insurance sector and the importance of effective governance and strategic reforms.